If You Have an Asset That You Will Be Selling

question 48

Multiple Choice

If you have an asset that you will be selling during the next two weeks, then you might be able to hedge the proceeds from the asset sale by:

• A) purchasing a call option on the asset.
• B) purchasing a put option on the asset.
• C) purchasing more of the asset.
• D) none of the above.

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Definitions:

Generalized Anxiety Disorder

Psychological disorder marked by persistent anxiety for at least six months, and in which the individual is unable to specify the reasons for the anxiety.

Insomnia

A sleep disorder characterized by trouble falling or staying asleep, leading to impaired daytime functioning.

Selective Serotonin Reuptake Inhibitors

These are a class of drugs commonly used as antidepressants in the treatment of depression, anxiety disorders, and some personality disorders by increasing the amount of serotonin in the brain.

Agoraphobia

An anxiety disorder characterized by an intense fear of situations where escape might be difficult or help would not be available if a panic attack occurs.